1. Field of Art
The disclosure generally relates to the field of electronic commerce.
2. Description of the Related Art
Auctions conducted online are well known. Generally auctions are conducted so that participant bidders bid on an item and the highest bidder wins. A twist on an auction is an entertainment auction, which sometimes is referred to as a penny auction. In a penny auction, participant bidders must buy a bundle of bids and use one every time they raise their virtual paddle. In some configurations, bids cost 60 cents to $1 each and are bought in packs of 10 to 700, depending on the site.
Although winners of penny auctions receive a substantial discount on an auctioned item, such discounts can be wiped away depending on the number of bids placed prior to winning the item. Moreover, when the bidding closes other bidders who have not won the auction are left with nothing despite incurring a cost for participating in the auction.